Technology Practice Group: Q1 2021 COVID-19 SAVILLS NORTH AMERICA - April 2021
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SAVILLS NORTH AMERICA Technology Practice Group: Q1 2021 COVID-19 Impacts Survey April 2021
Introduction
Survey Overview
In March 2021, the Savills Technology Practice Group issued its second Tech Tenant Impacts
survey to measure the evolving sentiment around tech workplaces in the wake of COVID-19.
Without any approved vaccines at the time, when the first edition of this survey was released in
August of 2020, the prevailing sentiment was one of uncertainty, as a return to any kind of
normalcy remained a distant prospect.
Six months later, more clear trends are emerging for how tech tenants anticipate that this past
exceptional year of remote work will impact the future of the workplace.
FLEXIBLE WORK IS THE NEW NORMAL:
73% of companies expect that employees will be in the office at least three days a
week, and only 4% of companies anticipate that employees will work from the office
all five days of the week.
SOME EMPLOYEE RELOCATIONS:
79% of companies have allowed at least some employees to relocate permanently
away from their previously assigned office, but these relocations largely represented
a small share of companies’ overall employee bases.
WORKPLACE DESIGN THAT EMPHASIZES HOTELING
AND COLLABORATION SPACES:
67% of tenants answered that hoteling will be more important than pre-pandemic, and
45% answered that collaboration spaces will be more important than pre-pandemic.
2
TABLE OF
CONTENTS
01 INTRODUCTION
02 SURVEY FINDINGS: COVID-19 IMPACTS
Return to Office
Office Space Impacts
Employee Relocation
Full-Time Remote Work
Flexible Work
Workplace of the FutureSurvey Findings:
Q1 2021 COVID-19
ImpactsWho Took Company Size Funding Stage Global Offices
The Survey
COMPANY GLOBAL A majority of companies
LOCATION HEADCOUNT were venture backed.
90% 1-50 employees
21% 1 24%
HEADQUARTERED 51-250 employees
IN UNITED STATES 24% Private but Public 2-5 41%
not venture
backed
24%
251-1000 employees
Other responses from: 24% Seed 22% 6-10 9%
1001-5000 employees 3%
Canada Series A Series D-E
17% 13% 16% 11-20 10%
Sweden 5001+ employees
Series B-C
14% 22% 21+ 16%
United Kingdom
0% 10% 20% 30% 0% 20% 40% 60%
Brazil
5Return to Office A majority of companies expect to be back
in the office by Q3 2021
Which of the following best describes how your organization has Unofficially, when is your organization thinking that
approached re-opening offices since the COVID-19 pandemic? most employees will return to work in the office?
We have not re-opened any We have re-opened offices as
of our offices yet. allowed by local governance Q1 2021 1%
55% 45% Q2 2021 4%
0% 20% 40% 60% 80% 100% Q3 2021 50%
Does your organization plan to require employees to receive
Q4 2021 24%
a COVID-19 vaccine in order to return to the office?
Q1 2022 11%
YES 8% Q2 2022 1%
NO 36% Q3 2022
0%
or beyond
UNSURE 56% We will never return to
work and will work 9%
remotely full-time
0% 10% 20% 30% 40% 50% 60% 70% 0% 20% 40% 60%
6Office Space Impacts Number of companies expecting
to need less space in the future
In the fall of 2020, 82% of tech companies surveyed anticipated leasing less down from to
space than planned in the next 12-18 months. By the start of 2021, that
proportion was nearly halved, with 47% answering that they’d lease less space. 82% 47%
Which of the following best describes the impact of COVID-19 on your office space needs in the next 12-18 months?
We will likely lease LESS space 82%
than planned pre-pandemic
47%
We will likely lease about as much
15%
space as planned pre-pandemic
40%
We will likely lease MORE space
3%
than planned pre-pandemic
13% Q3 2020 Q1 2021
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
7Employee Relocation
A majority of companies have allowed at least some employees to Has your organization adjusted the
permanently relocate away from their previously designated office. salaries of employees who have relocated
in accordance with their new locations?
Has your organization allowed employees to permanently relocate since the
start of the pandemic?
Yes, for all employees 26%
Yes, only on a
case-by-case basis
54%
YES
17%
No
UNSURE 12%
0% 10% 20% 30% 40% 50% 60%
21%
Among companies that allowed employee relocation, a wide majority of
companies have had fewer than 10% of employees relocate permanently. NO
Approximately what portion of your workforce has permanently relocated 67%
since the start of the pandemic?
0-10% 79%
11-20% 14%
21-30% 5%
31-40% 0%
41-50% 0%
51%+ 2%
0% 20% 40% 60% 80% 100%
8Full-Time Which of the following best describes how COVID-19 has impacted your
organization's approach to talent recruitment, if at all?
Remote Work
72% We are open to recruiting talent from new geographies given that some roles
will be able to be remote
answered that their
organization is now open to 72%
recruiting talent from new
geographies due to the We are planning to continue to recruit employees only in geographies where
possibility of remote work. we have an office.
20%
Other
11%
0% 10% 20% 30% 40% 50% 60% 70% 80%
9Flexible Work
73% of companies responded that they
anticipate employees being in the
office at least 3 days per week.
Consistent with results from Q3 2020, nearly all
companies expect flexible work to become normalized. About how many days per week does your organization
As a result of remote work during COVID-19, do you anticipate that envision that the average employee will work in the office
flexible work (e.g., working remotely a few days a week) will be in a typical week?
normalized in your organization in a post-vaccine environment?
YES NO 1 day 9%
Q3 2020
94% 6% 2 days 18%
3 days 58%
YES NO
Q1 2021 11%
95% 5% 4 days
5 days
4%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80%
There is not yet a
consensus on whether Which of the following do you anticipate would dictate employees'
flexible work schedules?
the company or the 24%
employee will decide Employees will decide which days they will work in the office 61%
15%
which days they work The company will decide which days employees will work in the office
from the office.
Still in consideration
10Workplace of the Future Most tech tenants surveyed expect
hoteling and social distancing of
workspaces to be more important in
83% of companies answered that flexible work
will impact their future workplace design.
future workplaces, and many believe
that collaboration spaces will be
more important.
When asked to elaborate on whether flexible work will impact their For each of the following elements of workplace
“workplace of the future” tenants’ commentary was consistent with these design, how has the pandemic impacted the
emerging themes: future of your organization’s workplace?
Social distancing of workspaces
0% 26% 67% 7%
Collaboration spaces
A SHIFT FROM ASSIGNED AN INCREASE IN THE AMOUNT 4% 44% 45% 7%
SEATING TO HOTELING OF COLLABORATION SPACES
Dedicated desk model
“ “
We more than likely will not have Same footprint, more collaborative 59% 24% 9% 8%
assigned seating except on a case- open areas, less workstations but
by-case basis, but rather hoteling. those workstations will have
Hoteling desk model
Productivity software (251-1,000 employees)
stand/sit, double monitors
E-commerce (251-1,000 employees) 5% 15% 67% 14%
“ “
Looking away from 1 to 1 space. 0% 20% 40% 60% 80% 100%
More common areas, phone booths,
Healthcare tech (1,001-5,000 employees) and collaborative spaces. Less focus
Less important More important
on having desks for everyone.
Same importance N/A
Insurtech (1-50 employees)
11Workplace of the Future
A majority of tech tenants are considering or Some of the most common platforms mentioned by
implementing a technology solution for desk booking tenants are below, sized relative to number of mentions:
and / or space monitoring.
Does your organization plan to implement a technology solution Skeeta
for desk booking and/or space monitoring?
Robin TriRiga
Envoy
STILL IN
Chargifi
CONSIDERATION
Nash.io
OfficeSpace
YES
SpaceIQ
43% 39%
CX App
NO Tactic
Realogix
18%
Condeco
12For more information,
please contact us:
Peyton Johnson
Manager, Occupier Services
pjohnson@savills.us
Joe Brady
Executive Managing Director
SAVILLS NORTH AMERICA
joebrady@savills.us
Technology Practice Group
Michael Mathias
Vice Chairman We value deep, meaningful partnerships. Our team of
mmathias@savills.us
collaborative, tech-focused specialists provide strategic
real estate and workplace advice to unlock growth for
Michael Mordaunt
Vice Chairman
the world’s most innovative companies.
mmordaunt@savills.us
From startup to enterprise, we advocate on the
Zev Holzman
occupier's behalf to eliminate conflicts and translate
Executive Managing Director business goals into strategy.
zholzman@savills.us
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